Germany-based life sciences giant Siemens Healthineers AG (ETR: SHL) has released its financial results for the third quarter of its 2023 fiscal year, which ended on June 30. The company reported global revenues of EUR 5.2 billion (USD 5.6 billion), marking a 3.6% year-on-year (YOY) growth in constant exchange rate terms. Excluding the loss of COVID-19 antigen testing revenues, the growth rate was a more robust 10.1% YOY.
Business Unit Performance and Regional Revenues
By business unit, Imaging sales saw a significant increase of 15.2%, reaching EUR 2.86 billion (USD 3.14 billion). Diagnostics revenues, however, declined by 20.1% YOY to EUR 1.09 billion (USD 1.2 billion), reflecting the reduced demand for COVID-19 testing. Radiation oncology-focused Varian revenues increased by 6.7% YOY to EUR 840 million (USD 921 million), and Advanced Therapies grew revenues by 11.9% YOY to EUR 483 million (USD 530 million).
China and Europe as Key Growth Drivers
In terms of regional revenues, Europe, CIS, Africa, the Middle East, and China were the primary growth drivers during Q3. China stood out as Siemens’ fastest-growing region with a 17% YOY expansion to EUR 711 million (USD 780 million). For the Q1-Q3 period, China maintained its position as the fastest-growing region with an 11% increase to EUR 2.1 billion (USD 2.3 billion).
Revenue Growth in China and Impact of Anti-Corruption Campaign
In China, Imaging and Advanced Therapies units experienced sharp revenue growth in Q3, while Diagnostics declined due to the absence of COVID testing revenues. CEO Bernhard Montag commented on the China market during the earnings conference call, noting that “underlying demand is super strong.” Montag anticipates continued growth in the region in the high-single-digits or low-double-digits. However, he acknowledged potential disruption this year due to the government’s anti-corruption campaign, which may cause hesitation in hospitals to place orders. Montag views any such disruption as a temporary phenomenon.-Fineline Info & Tech
